Encouraging salary system

Salary and rewarding are fundamental tools for management. A functional rewarding system guides operations, encourages personnel, improves the company's productivity, and attracts good employees.

An encouraging and profitable salary system is based on the company strategy and salary policy supporting the strategy. Salary systems work effectively when they fit in with the business entity. Salary systems must also be modified to meet changed requirements.

Salaries — from expenses to an investment

Companies are able to use different combinations from different salary methods. The basis of rewarding is an encouraging salary system that is complemented by other monetary and immaterial rewarding methods.

Successful rewarding consists of many components and depends on the situation in which rewarding happens.

Salary systems in collective agreements provide tools for the basis of company-specific salary systems and rewarding.